Trump Administration Calls Top Executive from Apollo into Action

While Apollo's future was overshadowed by a succession dispute among the founders a few years ago, the financial giant might now face another turbulent phase. The reason is the plans of future U.S. President Donald Trump, which could lead to the simultaneous departure of the chairman and CEO at Apollo. Particularly, the nomination of Jay Clayton, the chairman of the Apollo board, as the Chief Federal Prosecutor of Manhattan is causing a stir. Additionally, rumors are intensifying that Marc Rowan, the CEO of Apollo, is being considered as a candidate for the position of Secretary of the Treasury. Analysts from TD Cowen report numerous inquiries from the investor community focused on potential successors to Rowan. On one hand, investors expect government involvement to reduce regulatory pressure on the industry, while on the other, the leadership change at the asset manager, which oversees $722 billion, raises questions. Jim Zelter and Scott Kleinman, both co-presidents, as well as other key figures, are being considered as potential CEO successors. Despite intense speculation, Apollo refuses to comment on the latest developments. The stock market was nervous in light of the news: On Tuesday, Apollo's stock declined on reports of Rowan's ambitions in the Treasury, before rising by up to 1.8% on Thursday afternoon. Marc Rowan, who founded Apollo together with Leon Black and Josh Harris, took over leadership from Black in 2021 after an unavoidable generational change. This transition caused a stir because Black's connections to convicted sex offender Jeffrey Epstein made headlines and led to a dispute with the co-founders. Recently, Rowan has steered Apollo into new growth areas, expanding the business far beyond the original private equity business. The acquisition of the retirement services company Athene Holding for $11 billion in a stock exchange is indicative of Rowan's strategic reorientation. The integration of a retirement provider into the company's structure made Apollo one of the world's leading providers of corporate bonds.